Top brokers have said investors are returning to the WA market after a long period of inactivity.
MPA Top 100 Broker Troy Cameron of Stratique Finance in Wembley, WA, has seen investors reawaken in the Perth market after a long period of slumber.
“Investor activity from the start of 2012 with renewed interest in the Perth property market as opposed to the former focus of Queensland and Melbourne,” Cameron said.
The Real Estate Institute of Western Australia has echoed Cameron’s claims, saying it has seen a rush of investors that is only set to grow as the end of the financial year approaches.
“Many potential investors who have been waiting and watching the Perth market, in particular, following the decline in prices since 2010, now sense that it’s an opportune time to look at entering the market,” the group said.
Cameron said the rental market was the key to the surge in activity.
“Rental yields are the talk of the Perth market and are going through the roof at the moment. Renters are lining up to view properties and landlords are reaping the benefits. This is having a flow on to investor activity and confidence,” Cameron said.
Fellow MPA Top 100 Broker Darin Yacopetti agreed, and said Perth metro areas were seeing rental yields of 4.5-5%, while mining areas could yield as much as 10%.
REIWA data has borne out the claims, showing that median rents in the Perth metro area increased by 8.1% over the past year. The median weekly rent for Perth now sits at $420 per week. Vacancy rates in the city are tight as well, at 2.3%.